Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Earnings Before Income Taxes and Income Tax Expense

Earnings before income taxes and income tax expense consist of:

	Years Ended December 31
	2022			2021			2020
	(in thousands)
Earnings before income taxes:
United States		$	689,278		$	1,007,847		$	743,687
Foreign		125,818			208,615			163,749
Total		$	815,096		$	1,216,462		$	907,436
Income tax expense:
Partnership UBT		$	5,996		$	6,951		$	3,356
Corporate subsidiaries:
Federal		1,457			750			1,495
State and local		931			956			904
Foreign		34,327			58,080			44,086
Current tax expense		42,711			66,737			49,841
Deferred tax		(3,072)			(4,009)			(4,188)
Income tax expense		$	39,639		$	62,728		$	45,653

Difference Between the Effective Tax Rates and UBT Statutory Tax Rate

The principal reasons for the difference between the effective tax rates and the UBT statutory tax rate of 4.0% are as follows:

	Years Ended December 31
	2022					2021					2020
	(in thousands)
UBT statutory rate		$	32,604	4.0	%		$	48,659	4.0	%		$	36,297	4.0	%
Corporate subsidiaries' federal, state, and local		1,460		0.2			1,322		0.2			2,025		0.2
Foreign subsidiaries taxed at different rates		32,664		4.0			43,019		3.5			33,969		3.7
FIN 48 reserve (release)		—		—			—		—			(1,886)		(0.2)
UBT business allocation percentage rate change		(98)		—			23		—			8		—
Deferred tax and payable write-offs		1,089		0.1			1,003		0.1			(887)		(0.1)
Foreign outside basis difference		(1,535)		(0.2)			1,492		0.1			3		—
Amended 2017 return		—		—			—		—			(221)		—
Effect of ASC 740 adjustments, miscellaneous taxes, and other		5,366		0.7			1,799		0.1			2,654		0.3
Tax Credits		(5,275)		(0.6)			—		—			—		—
Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge		(26,636)		(3.3)			(34,589)		(2.8)			(26,309)		(2.9)
Income tax expense and effective tax rate		$	39,639	4.9	%		$	62,728	5.2	%		$	45,653	5.0	%

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years Ended December 31
	2022			2021			2020
	(in thousands)
Balance as of beginning of period		$	2,838		$	2,838		$	5,706
Additions for prior year tax positions		—			—			—
Reductions for prior year tax positions		—			—			—
Additions for current year tax positions		—			—			—
Reductions for current year tax positions		—			—			—
Reductions related to closed years/settlements with tax authorities		—			—			(2,868)
Balance as of end of period		$	2,838		$	2,838		$	2,838

Tax Effect of Significant Items Comprising the Net Deferred Tax Asset (Liability)

The tax effect of significant items comprising the net deferred tax asset (liability) is as follows:

	Years Ended December 31
	2022			2021
	(in thousands)
Deferred tax asset:
Differences between book and tax basis:
Benefits from net operating loss carryforwards		$	4,918		$	7,833
Long-term incentive compensation plans		17,524			24,468
Investment basis differences		10,286			5,523
Depreciation and amortization		3,071			3,942
Lease liability		4,911			5,327
Investment in foreign subsidiaries		26,479			—
Tax credit carryforward		6,171			—
Other, primarily accrued expenses deductible when paid		6,860			4,917
		80,220			52,010
Less: valuation allowance		(38,110)			(3,828)
Deferred tax asset		42,110			48,182
Deferred tax liability:
Differences between book and tax basis:
Intangible assets		10,190			7,622
Investment in foreign subsidiaries		—			4,084
Right-of-use asset		4,191			4,490
Other		2,808			2,075
Deferred tax liability		17,189			18,271
Net deferred tax asset		$	24,921		$	29,911